The Pre-Decision Scrutiny Questions and officer responses were noted and the Scrutiny response to the draft budget presented at Cabinet on Tuesday 18 January was also noted.

DECISION

1.    To propose a General Fund Revenue Funding Requirement of £388.964m for 2022-23 subject to any remaining changes arising from the final Local Government Finance Settlement.

2.    To propose to freeze the Tower Hamlets element of Council Tax and to only levy a 1% Adult Social Care precept for 2022-23. This will result in a Band D Council Tax of £1,124.39 (Council share) 2022-23 to be referred to Full Council for approval.

3.    To propose that the Interim Corporate Director – Resources, after consultation with the Mayor and Lead Member of Resources, makes any changes required to the budget following the final settlement announcement expected in February.

4.    To note that the Council is joining the 8 Authority Pool for Business Rates with seven other London Local Authorities for 2022-23 and note that delegated authority has been given to the Section 151 Officer to implement the Council’s inclusion in the pool.

5.    To approve the 2022-23 transfers to and from corporate reserves as set out in section 3.9 of the report.

6.    To approve the continuation of £1m funding from the Public Health grant to the Key Stage Two extension of Free School Meals.

7.    To approve that the increase in the Social Care Grant for 2022-23 is allocated in full to the services (75% to adult social care and 25% to children’s social care).

8.    To propose the 2022-23 Housing Revenue Account budget as set out in Appendix 6 to the report to be referred to Full Council for approval.

9.    To approve the HRA housing rent and service charge increases as outlined in section 3.11 of the report.

10.To approve the 2022-23 Management Fee payable to Tower Hamlets Homes (THH) of £33.236m as set out in paragraph 3.11.16 of the report.

11.To note that under the Management Agreement between the Council and THH, THH manages delegated HRA income and expenditure budgets on behalf of the Council.  In 2022-23, THH will manage delegated income budgets totalling £98.842m and delegated expenditure budgets totalling £32.128m.

12.To propose the 2022-23 Schools Budget.

13.To agree that the National Schools Funding Formula (NSFF) adopted by Tower Hamlets originally in 2019-20 continues for 2022-23. The only changes included are increases to the factor values in line with the NSFF and the use of the mobility factor in the NSFF for the first time.

14.To agree that the Minimum Funding Guarantee (the mechanism that guarantees schools a minimum uplift in per-pupil funding) is set at 2.0%, the maximum allowed after consideration for growth and factor changes in School allocations.

15.To agree that the structure of the Early Years Funding Formula remains unchanged except that the two year old hourly rates will increase in line with the Early Years National Funding Formula. 

16. To note that the Local Council Tax Reduction Scheme will remain unchanged for 2022-23.

17.To propose the three-year General Fund Capital Programme 2022-25 as set out in Appendix 7A to the report, totalling £347.282m.

18.To propose the three-year Housing Revenue Account Capital Programme 2022-25 as set out in Appendix 7D to the report, totalling £411.927m.

19.To approve the updated and revised 2021-22 General Fund and HRA Capital Programme budgets as set out in Appendix 7A to the report and 7D, totalling £156.458m and £73.154m respectively.

20.To approve the budget allocation for the newly listed growth schemes in the programme, subject to sign off through the capital governance process and agreement to proceed given by the Corporate Director of Place in consultation with the Corporate Director of Resources and agree that schemes funded by future capital receipts, s106 and/or CIL will not go ahead until such funds have been received by the Council.

21.To approve the funding principle that when capital receipts are received in year, they replace borrowing in future years.

22.To approve delegated authority to the Corporate Director of Place in consultation with the Corporate Director of Resources to take any steps required to deliver the capital programme including but not limited to going out to tender, appointing consultants and contractors in accordance with the Procurement Procedures, acquiring land interests and appropriating land from the General Fund to the Housing Revenue Account (HRA) for the delivery of new council homes, subject to approved budget.

23.To note the Equalities Implications as set out in Section 4 of the report.

Action by:

INTERIM CORPORATE DIRECTOR, RESOURCES (K. BARTLE)

(Director of Finance, Procurement and Audit (N. Visram)

Councillor Candida Ronald, Cabinet Member for Resources and the Voluntary Sector, introduced the report. She highlighted that there were two key changes since the initial draft budget had been presented at the last Cabinet meeting. These were the updated capital programme and a number of new growth bids to support front-line services.

She highlighted that December’s local government settlement had provided more money for the authority which was welcome but as it was only for one year there was a lot of uncertainty for the future. This meant that the Executive was proposing a one-year budget rather than the normal three-year medium term financial plan. She also highlighted £18 million in growth proposals including for services highlighted by residents during the recent budget consultation.

She thanked officers for their hard work to ensure the Council was able to propose the budget set out including freezing the main Council Tax charge and that overall the budget supported the goal of making Tower Hamlets safer, cleaner and fairer.

Councillor Rachel Blake, Cabinet Member for Adults, Health and Wellbeing (with responsibility for capital programmes), took Cabinet through the Cabinet Programme set out in the report and appendices. The Council was prudent to make sure resources were appropriately allocated to relevant capital projects.

Councillor Danny Hassell, Cabinet Member for Housing, then took Members through the Housing Investment Plans with significant investment planned to provide new council housing.

Cabinet heard from Councillor Peter Golds, Leader of the Conservative Group, who highlighted concerns about the costs associated with the liveable streets programme and the need to set out the cost of each scheme. 

The Mayor thanked everyone for their comments. He noted the Pre-Decision Scrutiny Questions and officer responses and noted the Scrutiny response to the draft budget presented at Cabinet on Tuesday 18 January.

He proposed the recommendations as set out to forward the budget to Council for agreement, subject to Overview and Scrutiny Committee reviewing those areas which were new to this version of the report (The Capital Schemes and additional growth bids). The recommendations were unanimously agreed by the Members present and it was:

RESOLVED

1.    To propose a General Fund Revenue Funding Requirement of £388.964m for 2022-23 subject to any remaining changes arising from the final Local Government Finance Settlement.

2.    To propose to freeze the Tower Hamlets element of Council Tax and to only levy a 1% Adult Social Care precept for 2022-23. This will result in a Band D Council Tax of £1,124.39 (Council share) 2022-23 to be referred to Full Council for approval.

3.    To propose that the Interim Corporate Director – Resources, after consultation with the Mayor and Lead Member of Resources, makes any changes required to the budget following the final settlement announcement expected in February.

4.    To note that the Council is joining the 8 Authority Pool for Business Rates with seven other London Local Authorities for 2022-23 and note that delegated authority has been given to the Section 151 Officer to implement the Council’s inclusion in the pool.

5.    To approve the 2022-23 transfers to and from corporate reserves as set out in section 3.9 of the report.

6.    To approve the continuation of £1m funding from the Public Health grant to the Key Stage Two extension of Free School Meals.

7.    To approve that the increase in the Social Care Grant for 2022-23 is allocated in full to the services (75% to adult social care and 25% to children’s social care).

8.    To propose the 2022-23 Housing Revenue Account budget as set out in Appendix 6 to the report to be referred to Full Council for approval.

9.    To approve the HRA housing rent and service charge increases as outlined in section 3.11 of the report.

10.To approve the 2022-23 Management Fee payable to Tower Hamlets Homes (THH) of £33.236m as set out in paragraph 3.11.16 of the report.

11.To note that under the Management Agreement between the Council and THH, THH manages delegated HRA income and expenditure budgets on behalf of the Council.  In 2022-23, THH will manage delegated income budgets totalling £98.842m and delegated expenditure budgets totalling £32.128m.

12.To propose the 2022-23 Schools Budget.

13.To agree that the National Schools Funding Formula (NSFF) adopted by Tower Hamlets originally in 2019-20 continues for 2022-23. The only changes included are increases to the factor values in line with the NSFF and the use of the mobility factor in the NSFF for the first time.

14.To agree that the Minimum Funding Guarantee (the mechanism that guarantees schools a minimum uplift in per-pupil funding) is set at 2.0%, the maximum allowed after consideration for growth and factor changes in School allocations.

15.To agree that the structure of the Early Years Funding Formula remains unchanged except that the two year old hourly rates will increase in line with the Early Years National Funding Formula. 

16. To note that the Local Council Tax Reduction Scheme will remain unchanged for 2022-23.

17.To propose the three-year General Fund Capital Programme 2022-25 as set out in Appendix 7A to the report, totalling £347.282m.

18.To propose the three-year Housing Revenue Account Capital Programme 2022-25 as set out in Appendix 7D to the report, totalling £411.927m.

19.To approve the updated and revised 2021-22 General Fund and HRA Capital Programme budgets as set out in Appendix 7A to the report and 7D, totalling £156.458m and £73.154m respectively.

20.To approve the budget allocation for the newly listed growth schemes in the programme, subject to sign off through the capital governance process and agreement to proceed given by the Corporate Director of Place in consultation with the Corporate Director of Resources and agree that schemes funded by future capital receipts, s106 and/or CIL will not go ahead until such funds have been received by the Council.

21.To approve the funding principle that when capital receipts are received in year, they replace borrowing in future years.

22.To approve delegated authority to the Corporate Director of Place in consultation with the Corporate Director of Resources to take any steps required to deliver the capital programme including but not limited to going out to tender, appointing consultants and contractors in accordance with the Procurement Procedures, acquiring land interests and appropriating land from the General Fund to the Housing Revenue Account (HRA) for the delivery of new council homes, subject to approved budget.

23.To note the Equalities Implications as set out in Section 4 of the report.